Picnic Corp president and director Watcharakiti Watcharothai has resigned from the embattled company, according to a statement from the Stock Exchange of Thailand. However, the company has not explained the decision.

Director Nirun Fukanjananon and assistant managing director also resigned from their posts at the end of February.

Picnic is struggling to raise funds after a recapitalisation plan approved by shareholders was delayed last week because of a lack of a quorum to pass the measure, which raised doubts about whether the company's major shareholders were about to sell off their holdings.

The company is saddled with considerable debts and fresh investment is vital. Auditors stated that the company's balance sheet at the end of 2005 was Bt1.7 billion more than its assets.

The company recently mobilised another batch of funding by issuing 1.48 billion shares to existing shareholders at a ratio of 2:1 for Bt1 each, far below the market price.

Picnic is facing legal action from three asset-management companies, which claim defaults on their bills of exchange at the end of last year.

Meanwhile, the SET is unhappy with Eastern Wire's clarification concerning the company's purchase of Bt500 million promissory notes (P/Ns) issued by Siam General Factoring (SGF), saying there were contradictions in accounts from the two companies.

The SET asked Eastern Wire to clarify whether it needed SGF's approval to transfer the P/Ns to a third party.

Eastern Wire is now required to confirm which of the companies' statements, concerning third-party involvement, is correct.

The organisation has been required to give the issue and maturity date of the P/Ns, the date the memorandum was signed, and the names and position of people who signed it.